Grand Traverse Mall
General Growth Properties (GGP), upon emerging from bankruptcy, retained ownership in several underperforming regional malls. The special servicer for the secured lender was interested in maximizing recovery through a negotiated work-out or off-market sale of the center. Both organizations agreed they needed a trusted asset management team, and tapped Trigild to oversee all operations and leasing. As the only enclosed mall in a 50 mile area, Grand Traverse Mall, anchored by Macy’s, Target, JC Penney & TJ Maxx, serves 22 counties in Northern Michigan.
|Submarket||Grand Traverse, MI|
|Client||GGP/Midland Loan Services|
|Strategy||Renewed Management & Leasing focus|
|Leasing Success||15% of GLA|
|Results||Negotiated Sale’ Maximized Recovery|
Business Plan Summary
Improvement in property operations was necessary to protect the asset’s value. Trigild was hired as asset manager to improve oversight on operations and spending, as well as increase the visibility and efforts of the leasing team with the national retail tenants. The detailed plan included participation at ICSC events, targeted tenant prospect outreach, improved tenant relations efforts, detailed cost controls and improved employee cohesion.
- Over seven months, Trigild’s team improved property operations and reinvigorated the leasing efforts, negotiating leases covering nearly 15% of the property.
- This success was instrumental in the lender’s efforts to negotiate a structured debt modification, which was a key factor in the sale of this asset to Rouse Properties, Inc.